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The information contained in this Crypto Asset Statement was last updated on Jul 12, 2024

No securities regulatory authority in Canada has expressed an opinion about BONK or any of the other Crypto Contracts or Crypto Assets made available through Newton Crypto Ltd. (Newton) on the Newton Platform, including an opinion that BONK itself is not a security and/or derivative.  Changes to applicable law may adversely affect the use, transfer, exchange, or value of any of your crypto assets, and such changes may be sudden and without notice.

Newton is offering Crypto Contracts in reliance on a prospectus exemption contained in the exemptive relief decision Re Newton Crypto Ltd. dated August 15, 2022.  The statutory rights of action for damages and the right of rescission in section 130.1 of the Securities Act (Ontario) and similar legislation in the other provinces and territories of Canada would not apply in respect of a misrepresentation in this Crypto Asset Statement or the Newton Platform Risk Statement.

This overview provides a summary of certain risks associated with BONK and is not an exhaustive description or summary of these risks and, in addition, does not take into account an individual’s particular situation or risk tolerance.  Investors are encouraged to conduct their own research prior to trading any crypto asset.

Newton users should read the Newton Platform Risk Statement for additional discussion of general risks associated with crypto assets made available through the Newton platform. A copy of the Newton Platform Risk Statement acknowledged by you is available in your account in the “Statements & Reports” section.

Token Description & Project Background

BONK is a meme-based cryptocurrency designed to bring fun and community engagement to the crypto space. BONK aims to create a vibrant ecosystem that leverages the power of memes and social media to build a strong and active community. While BONK primarily serves as a meme coin, it also explores use cases in decentralized finance (DeFi) and community-driven initiatives.

Some Key Facts/Features about Bonk:

• Community-Driven: BONK is heavily focused on community engagement and participation. The project relies on its community to drive adoption, create content, and spread awareness through social media and other platforms.
• Meme Culture: BONK capitalizes on meme culture to attract a wide audience. Memes play a central role in the project’s marketing and branding efforts, making it accessible and entertaining for a broad audience.
• Decentralized Finance (DeFi) Integrations: Although primarily a meme coin, BONK is exploring integrations with DeFi protocols. This includes staking, liquidity pools, and other financial instruments that provide utility beyond its meme-based origins.
• Social Media Influence: BONK leverages social media platforms such as Twitter, Reddit, and TikTok to promote the coin and engage with its audience. 

Risks of BONK

Like an investment in other crypto assets, an investment in BONK includes the following general risks:  (i) volatility risk and liquidity risk, (ii) short history risk, (iii) demand risk, (iv) forking risk, (v) code defects, (vi) regulatory risk, (vii) electronic trading risk, and (viii) cyber security risk.

For additional information of general risks associated with crypto assets, you may refer to the Newton Platform Risk Statement.  In terms of specific risks, as BONK is one of the longest-standing crypto assets and its community base is widely decentralized, there is no central working group or authority to disclose material information to the public regarding BONK.

Please note that these risks and the associated summaries or overviews provided for each herein are not intended to be an exhaustive discussion pertaining to all such risks and, in addition, there may be other risks that come with exposure to BONK. We encourage all Newton users to perform their own due diligence to assess the risks associated with BONK and to determine whether this level of risk is acceptable to them.  Neither the Bonk team/founders nor Newton guarantees the value of BONK, and holders of BONK will not have any recourse to BONK or Newton if the value of BONK declines for any reason whatsoever.

Newton’s Evaluation Process

Newton has reviewed and assessed BONK prior to making it available on the Newton Platform and has concluded that BONK is not a security or derivative under Canadian securities legislation; however, there is a risk that this conclusion could change in the future and that, in such event, Newton will be required to halt, suspend, and then remove BONK from its platform as described in the Newton Platform Risk Statement.

Further, as indicated above, no Canadian securities regulatory authority has expressed an opinion about BONK, including an opinion that BONK is not itself a security and/or derivative.

Based on publicly available information Newton has reviewed BONK, including, but not limited to, a review of the following:

• The creation, governance, usage, and design of BONK, including the source code, security, and roadmap for growth in the developer community and, if applicable, the background of the developer(s) that created BONK.
• The supply, demand, maturity, utility, and liquidity of BONK.
• Material technical risks associated with BONK, including any code defects, security breaches and other threats concerning BONK and its supporting blockchain (such as the susceptibility to hacking and impact of forking), or the practices and protocols that apply to them.
• Legal and regulatory risks associated with BONK, including (i) any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of BONK, and (ii) statements made by any securities regulatory authorities in Canada, other regulators in IOSCO-member jurisdictions, or the regulator with the most significant connection to BONK about whether BONK, or generally about whether the type of crypto asset, is a security and/or derivative.